Honda Atlas Posts Rs 1.19 Billion in Net Profits

Atlas Honda Limited – the leading motorcycle making company in Pakistan — posted a consolidated profit of Rs. 1.19 billion for the quarter ended June 30, up 8.18% compared to Rs 1.10 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs. 11.55 compared to an EPS of Rs. 10.64 in the same period last year.

According to the report, the company’s Sales increased by 25% while their Gross Profit went up by 9%, as compared to the Quarter ending on June 30th 2017.

The company’s sales grew to Rs 22.12 billion, up by 25.1% from Rs 17.69 billion during the year before. The gross margins of the company increased to Rs. 2.12 billion, up from Rs. 1.94 billion up by 9.28% due to rise in raw material costs resulting from PKR devaluation and rise in international commodity prices.

The company has increased selling price by 1.4% effective from 1st April. Other Operating income demonstrated an increase of 16.5%, while Finance cost dropped by 44%

The company sold over 311951 units (two wheelers), up 25.43% from 248710 units in the corresponding previous year which contributed massively to the sales on the back of increased production capacity.

Sales have grown on the back of a strong demand for cheap transportation in fast urbanizing cities and towns especially in Karachi. The unrelenting surge in local and imported motorbikes is an indicator of where demand is headed in the future.

Back in April an investment plan for the expansion of its motorcycle operations in Pakistan was announced to meet the demand.

The board of directors of the company had approved a two year phase-wise expansion plan to increase the installed capacity of the company up to 1.5 million units per annum.

The project cost is estimated at USD 15 million.

ATLH’s script at the bourse was trading at Rs. 457, up by Rs. 16.33 with a turnover of 8,400 shares.